Ukraine crisis may push oil prices $20 up

2022-02-23T19:22:08
Oil Oil market Oil prices oil sector opec
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Ukraine crisis may push oil prices $20 up

Ukraine crisis may push oil prices $20 up: Executives of the oil industry have met in London to attend the international petroleum week,
to assert again their progressive vision about oil prices,
the foreign policy of Russia came on top adding a new layer of progressive fears by moving its army towards the east of Ukraine.
Gas prices have risen in Europe followed by oil prices due to fears of any cuts in Russian supplies,
or the potential penalties to lead to tighter markets than they really are today.

Evest follows Oil market developments in the following report

Topics:

Changes in oil prices for the week

Latest decisions by the market’s drivers

The oil sector updates

 

Changes in oil prices for the week

The last escalation between Russia and Ukraine led to a rise in oil prices of about $100 per barrel earlier on Tuesday.

Brent crude recorded its highest new level in seven years at $99.50 a barrel just before it backed off to $97 a barrel.

Late on Monday the Russian president Vladimir Putin acknowledged,
two separate areas in the east of Ukraine and ordered to spread troops there,
yet this has been the most dangerous escalation of the crisis so far.

Brent crude was for $99 a barrel earlier on Friday before it backs off later.

By the beginning of the week it was obviously seen that prices are going up to $100, as Ukraine has sent its troops,
nevertheless OPEC has failed in achieving its targeted production,
yet the executives of the industry forecasted a consecutive surge of prices.

Oil prices have risen to their highest level since 2014,
following Moscow’s recognition of Donetsk and Luhansk as two separate and independent areas,
and it moved its troops to the east of Ukraine to raise European concerns about supplies.

In the last week Brent instant prices were above $100 per barrel,
but now ICE Brent futures contracts seem to surge progressively to this step again.

The decline of Brent crude is the highest in a decade as there is a $2.40 per barrel between April and May contracts.

Oil prices may jump another $20 per barrel if the Russian-Ukrainian crisis escalates, according to U.S. BOFA bank.

Latest decisions by the market’s drivers

Exxon Mobil (NYSE:XOM), a giant American oil company, has struck a deal with Papua New Guinea’s government,
to develop the suspended P’nyang gas field,
it agreed to a 63% from the government.

As oil prices surged, Saudi Aramco has managed to get unexpected gains.

The Saudi national oil company is conducting talks with Chinese companies to raise investments on the refinery sector and petrochemicals.

Reports have shown that the giant American oil company, Chevron (NYSE:CVX),
is looking forward to selling its assets in Equatorial Guinea,
that were taken over when it took over Noble energy for $13 billion in 2020,
seeking to get $1 billion of the deal.

 

The oil sector updates

Germany has suspended Nord Stream 2

Germany’s government suspended certification of the Nord Stream 2 on the basis of the deployment of Russia in Ukraine,
to lead to a rise of 10% per day in instant chests to 80 euros/megawatts hour ($29/million Btu).

OPEC, the commitment is still an obstacle

According to media reports, OPEC’s commitment to its targeted production rose in Jan to 129%, 7 points higher than December 2021

.As the weak performance spread over OPEC 10 to 133% in the last month.

Liquefied natural gas supplies hit high in the USA

It is expected for venture global Calcasieu pass to start its commercial production despite there are only 4 out of 18 liquefying trains are working.

The liquefied natural gas supplies are building up in the USA to about 13 billion cubic feet per day.

The European Union considers the obligatory gas storing

The European Union is studying whether it will authorize its countries to fill their natural gas storing capacity,
as Brussels wants to appoint the minimum level of storing to avoid any stock shortages this year amid the decline of the Russian supplies.

 

Another discovery for Total Energies in Suriname

Total Energies (NYSE:TTE), a giant French company, and its partner APA corporation (NASDAQ:APA) ,
have made a great oil discovery in block 58 on Suriname’s coasts as its Krabdagu-1 well encountered about 90 meters of net oil,
yet it is the fifth greatest discovery in the South American state.

Qatar assures the shortfall of maneuverability

According to Saad Al kaabi, Qatar’s minister of energy, Qatar can only shift 10-15% of its exports to clients with no contracts,
saying “ It is hardly impossible” to replace Russia’s supplies to Europe.

Finally Paramount refinery insurance contract ends

Syndicates’ workers who have been excluded for 10 months have voted for the acceptance of a new contract by Exxon Mobil (NYSE:XOM),
to give Paramount TX refinery of 370.000 bpd the opportunity to avoid an unfamiliar strike and resume the ordinary work.

Canada stops funding Trans Mountain amid balloons costs

Canada’s government has announced it will suspend any funding for Trans Mountain pipeline of 890.000 bpd as its costs have risen,
70% to $17 billion and postpones finishing it nine months to the third quarter of 2023.

Somalia isn’t ready yet for discoveries

Somalia’s prime minister had a quarrel with his energy ministry and denied the oil drilling,
contract that was signed with Coastline Exploration, headquartered in the U.S.,
explaining that any deals can’t be signed during the period prior to elections.

Kuwait has launched natural gas liquefying terminal

Finally Kuwait has begun its full operations in Al Zor facility for liquefied natural gas importing by capacity of 22 million tons per year,
just eight months after it has delivered the first cargo there to help the country well deal with the progressive demand for electricity.

The Pentagon wants to enhance the reserves of Lithium and rare minerals

Reports have shown that the U.S. department of defense is planning to enhance its strategic reserves of rare minerals,
Lithium and Cobalt to lessen its dependence on China, keeping the domestic production at first use.

Fuel runs out off in Sri Lanka

As a testimony to the consecutive troubles that startup economics face, such economics only have  little foreign exchange reserves,
Sri Lanka has launched an emergency diesel bid as the state has got gas only enough for three days.

Nickel and Aluminum surge

The prices of nickel and aluminum rose to their highest levels in years due to fears of cuts in supplies from Russia,
as the late one was for $24.500 per metric ton on Tuesday

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